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Kerry Katona is said to be over the moon this week having agreed to a £300,000 deal to take part in Celebrity Big Brother 2011 later this month. The 30-year-old has reportedly told pals that she's "on cloud nine" after signing the contract with Channel 5 last week.

It'll allow the mum-of-four to pay off her growing debts after splitting with her management company last month.

Kerry supposedly told a friend: “My life is changing for the better. Things are going really well. My money worries could be over.”

The pal added: “Kerry is on cloud nine. Big Brother couldn’t have come at a better time.”

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Kerry is currently taking part in a crash Celebrity Big Brother diet to get her down to a size 8 to look good for the show, which starts on August 18.

Sources say the former singer wanted to be thinner when in the house alongside stars such as TOWIE babe Amy Childs and Baywatch star Pamela Anderson.

"Kerry is worried about looking so old and frumpy next to Amy. She’s put herself on a strict diet of salads and low-fat soups to get to a size 8," the insider explained.

“She’s even cut back on fags so she can do more exercise – she’s doing her own workout DVD and running three miles nearly every day."

Other celebs lined up for the series include Jedward and Sally Bercow, wife of the House of Commons Speaker.